Apprenticeship Q and A
1. What does the announcement mean?
2. What is the Apprentice National Minimum Wage (NMW) rate?
3. I earn more than £2.50 an hour, will my wages be cut?
4. When will it happen?
5. Who does it apply to?
6. Can any benefits-in-kind, such as tips, accommodation, meals, or childcare vouchers, count towards the statutory minimum wage for apprentices?
7. Will I be entitled to the new apprentice minimum rate for the entire length of my Apprenticeship?
8. I am 19 and have been on my Apprenticeship for over a year. What NMW rate should I be paid?
9. What does this mean for me? (Scottish/Welsh/Northern Irish/English apprentice)
10. I am working/training fewer than 38 hours a week and the new rate puts me on a lower wage than the existing £95 per week minimum. [Note England only]
11. Why do the transitional arrangements apply only to England?
12. Why has the previous weekly minimum (£95 per week) been replaced by an hourly minimum rate? [England only]
13. I am on a Programme-Led Apprenticeship, do I get the rate?
14. The new £2.50 hourly rate is too low. Why? When will it be increased?
15. Why is training included in the definition of hours for the Apprentice NMW?
16. What can I do if I think I’m not being paid at least the statutory minimum rate of pay for my Apprenticeship?
Additional questions from employers.
17. What does this mean for me? (employer)
18. What is an Apprenticeship?
19. I call my trainees apprentices, are they eligible for the Apprentice NMW?
20. Will these changes need to be implemented on the 1st October 2010, or the first full pay reference period after 1 October 2010?
- The current exemption from the National Minimum Wage (NMW) for apprentices will end from 1st October 2010.
- It will be replaced by a NMW for all apprentices aged under 19; and apprentices aged 19 or over in the first year of their Apprenticeship.
- The new NMW applies to time working plus time spent training that is part of the Apprenticeship.
Employers will be free to pay above the new NMW. Many already do so and this change will not affect that.
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- There is no reason for your employer to cut your pay. It is a minimum below which you should not be paid – it is neither a standard rate, nor the rate for all Apprenticeships.
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- The current exemption will end and the new apprentice NMW will apply from the pay period that starts on or after 1st October 2010.
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- The change will apply to all new and existing apprentices aged under 19; and to those aged 19 or over in the first year of their Apprenticeship. The change does not affect those apprentices aged 19 or over who have already completed a year of their Apprenticeship – they will continue to be entitled to be paid at least at the full NMW rate appropriate to their age.
- Apprentices are those on a contract of Apprenticeship or those on a Government funded Apprenticeship in England, Northern Ireland, Scotland or Wales. If you are not in one of these categories your employers must pay you at least the minimum wage appropriate to your age.
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- In-kind benefits such as meals, tips and childcare vouchers will not count towards the apprentice NMW. Deductions for accommodation may be applied, up to a daily limit (£4.61 per day from 1 October 2010).
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- Not necessarily. The new apprentice NMW applies to all apprentices aged under 19; and to those aged 19 and over in the first year of their Apprenticeship.
- If you reach age 19 and have completed the first year of your Apprenticeship your employer must pay you at least the full NMW rate of £4.92 per hour for those aged 18 to 20 and £5.93 per hour for those aged 21 and over.
- If you are already 19 and have completed the first year of your Apprenticeship you must be paid at least the NMW rate for your age.
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- If you are already 19 or over and have completed the first year of your Apprenticeship you must be paid at least the NMW rate for your age.
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- This change applies to those on a publicly supported Apprenticeship programme in the United Kingdom. That is those on:
- An Apprenticeship or Advanced Apprenticeship in England
- ApprenticeshipsNI or Modern Apprenticeships in Northern Ireland
- Modern Apprenticeships in Scotland
- Foundation Modern Apprenticeship; or Modern Apprenticeships; or Foundation Apprenticeships; or Apprenticeship in Wales
- This change also applies to those employed on a contract of Apprenticeship.
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- If you are being paid £95 per week in England as currently required under government funded Apprenticeships your employer must continue to pay you at least £95 per week for the remainder of your training or until you become eligible for the full NMW.
- If you are receiving less than £95 per week after the 1st October 2010 after previously receiving £95 per week or more before we will refer your complaint to the NAS helpline.
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- This is because only in England have apprentices on government funded Apprenticeships been entitled to be paid at least £95 per week. The transitional arrangements protect the small number of people who might have been worse off under the new arrangements. There were no similar arrangements in Northern Ireland, Scotland or Wales.
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- The NMW is based on hourly rates. The Government has accepted the Low Pay Commission’s recommendation of a minimum hourly rate. This will mean a simpler single system for employers.
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- No. The NMW does not apply to Programme–led Apprenticeships in England and similar programmes in Northern Ireland, Scotland and Wales. Those on Government funded programmes who are unwaged are not entitled to the NMW or the apprentice minimum wage. You may be eligible for the Education Maintenance Allowance or other learner support or allowance.
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- The Low Pay Commission has recommended a rate that is fair to apprentices and does not discourage employers from offering Apprenticeships. The Government has accepted the rate recommended. The rate is a minimum, employers can pay more – and many do so. The rate is consistent with current arrangements in England.
- The Low Pay Commission will review the arrangements in 2011.
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- An Apprenticeship is a package of work and training. The treatment of training is consistent with normal National Minimum Wage rules.
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Additional Questions from employers
- From the pay period that starts from on or after 1st October 2010 you must make sure all your apprentices are being paid at least £2.50 for all of the time they are on their Apprenticeship. This includes time working plus the time spent training.
- Apprentices aged 19 or over who have already spent a year on their Apprenticeship must be paid at least the full NMW rate appropriate to their age.
- You must ensure that any existing apprentices you employ on a government funded Apprenticeship continue to receive a wage of at least £95 a week for the remainder of their training or until they are eligible for the age rates of the NMW.
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- An Apprenticeship includes those who are employed on a contract of Apprenticeship and those on a publicly funded Apprenticeship programme.
- Only the above apprentices may be paid the Apprenticeship minimum wage; all other employees must receive the full NMW appropriate to their age.
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- Only if they are employed on a contract of Apprenticeship; or they are on a publicly funded Apprenticeship programme and aged under 19 or are 19 and over in the first year of their programme.
- The publicly supported Apprenticeship programmes in the United Kingdom are:
- An Apprenticeship or Advanced Apprenticeship in England
- ApprenticeshipsNI or Modern Apprenticeships in Northern Ireland
- Modern Apprenticeships in Scotland
- Foundation Modern Apprenticeship; or Modern Apprenticeships; or Foundation Apprenticeships; or Apprenticeship in Wales
- All other employees must be paid at least the NMW appropriate to their age.
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